Critical Analysis: GameStop (NYSE:GME) versus Gamehaus (NASDAQ:GMHS)

GameStop (NYSE:GME) and Gamehaus (NASDAQ:GMHS) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Profitability

This table compares GameStop and Gamehaus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GameStop	20.45%	14.10%	7.18%
Gamehaus	N/A	N/A	N/A

Institutional & Insider Ownership

29.2% of GameStop shares are owned by institutional investors. Comparatively, 63.7% of Gamehaus shares are owned by institutional investors. 9.5% of GameStop shares are owned by insiders. Comparatively, 27.7% of Gamehaus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

GameStop has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500. Comparatively, Gamehaus has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Valuation and Earnings

This table compares GameStop and Gamehaus”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GameStop	$3.63 billion	2.79	$418.40 million	$0.75	30.11
Gamehaus	$118.05 million	0.43	$3.96 million	$0.09	10.61

GameStop has higher revenue and earnings than Gamehaus. Gamehaus is trading at a lower price-to-earnings ratio than GameStop, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for GameStop and Gamehaus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GameStop	1	1	0	0	1.50
Gamehaus	1	0	0	0	1.00

GameStop currently has a consensus price target of $13.50, suggesting a potential downside of 40.23%. Given GameStop’s stronger consensus rating and higher probable upside, analysts plainly believe GameStop is more favorable than Gamehaus.

Summary

GameStop beats Gamehaus on 11 of the 13 factors compared between the two stocks.

About GameStop

GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It sells collectibles comprising apparel, toys, trading cards, gadgets, and other retail products for pop culture and technology enthusiasts, as well as engages in the digital asset wallet and NFT marketplace activities. The company operates stores and ecommerce sites under the GameStop, EB Games, and Micromania brands; and pop culture themed stores that sell collectibles, apparel, gadgets, electronics, toys, and other retail products under the Zing Pop Culture brand, as well as offers Game Informer magazine, a print and digital gaming publication. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas.

About Gamehaus

Gamehaus Holdings Inc. is a mobile game developer and publisher. Gamehaus Holdings Inc. is headquartered in Beijing, China.